AUDUSD: Still weakly bullish as 0.6850 holds
Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6868 to justify a long trade entry.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6917 or 0.6940.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6850 or 0.6830.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
AUD/USD Analysis
I wrote last Thursday that the price had continued to advance and print new higher support at 0.6868 as well as holding up above the pivotal 0.6850 area, so I was ready to take a bullish bias that day above 0.6890 until 0.6917 is reached. The price in fact topped that day just above 0.6890 but is only a few pips below that level now, so it was a mediocre call.
The technical situation is interesting as the price has continued to hold up and advance very slowly. The fact that 0.6850 has continued to hold is significant. The market seems poised to advance and is probably waiting for the RBA Meeting Minutes release due later during the Asian session to make its move.
I prefer to look for long trades here, either following a bullish breakout above 0.6890 after the RBA release, or from a bullish bounce off 0.6850 at any time.
There is nothing of high importance due today regarding the USD. Concerning the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.